Socioemotional Wealth and Financial Performance and Their Impact on Innovation Initiatives in Mexican Family Businesses: A Case Study

Abstract

This work contributes to understanding the connection between family firms’ goals and interests with the resources and competences they use to carry out entrepreneurial actions connected mainly with innovation. To examine this issue, the authors conducted an explorative-descriptive case study that included two Mexican family firms. The results show that it is possible to find an alignment between financial performance and socioemotional wealth (SEW) and the different types of resources and competences that a family firm displays to reach them. Also, the firm’s entrepreneurial orientation (EO) may serve to moderate this alignment.